Getting started in Seattle area

[Kishor Y.]

My name is Kishor and I have a full time job in seattle. I have no real estate investing experience but I find the subject extremely fascinating and viable in regards to creating greater financial independence. My goal is to acquire at least ten rental homes over the next 2-5 years and perhaps move into multi-family units sometime shortly after that.

I am eager to learn, as well as give back, and would be interested in connecting with you on best practices for getting started in this market and investment vehicle.

I am looking to flip properties in North Seattle area and would appreciate answers to the following questions:

1) East side funding has 12% and 2 points origination fees for 5 months, are they better HML in seattle area?

2) What is the typical norm for paying the selling listing agent and buyer's agent for the flip?

Lastly, I am looking to build my team and appreciate recommendations for the following

1) GC & Handyman

2) Listing agent

3) HML

4) Title company & Escrow

5) CPA

Thank you,

Kishor.

[Jake Alger]

Hi Kishor,

First and foremost, congratulations on getting started in Real Estate investing! You're taking the right first steps which is educating yourself and reaching out to those with experience on the subject.

You mention looking to acquire rental properties but are mentioning flips. Are you looking to start with flipping and eventually build a portfolio of rentals?

To answer you questions, i'll go through one by one.

1. Eastside Funding is the main HML in the greater Seattle area. They close on a lot of deals and have a reputation that speaks for itself. I've used them, investors I work with have used them, even a couple of developers I know have used them. As with any HML, you need to make sure your numbers, contractors and timelines are on point. While I believe ESF will hold a note for up to 12 months (don't quote me on that), you don't want to be holding something that long and paying 12% interest on the deal... you will lose profits, fast.

2. It's customary in our market that the seller pays both sides of the agent commissions. This means that when you're buying, you will not be paying the buyer's agent's commission, the seller will. When you finish the rehab and become the seller (listing the property on the market), you will likely pay the commission for both sides when a ready, willing and able buyer is found and closes on the property.

To expand on this, typically the agent who brings you the buy-side of the flip (before the rehab), would like to become the listing agent when you're ready to sell. Working in partnership with an agent who understands these types of investments can be invaluable when identifying properties. This is typically how deals are structured when investor friendly agents work with investors.

-- Team Building --

1. I'd be happy to recommend great contractors to you when ready.

2. Listing agent -- I am an investor friendly Real Estate Agent from Bellevue :)

3. HML - I've always worked with and trusted Eastside Funding. As I mentioned before, I work with plenty of investors who are either cash or finance their deals through ESF. There are other options as well (Intrust Funding, Private Lenders Group, Veristone, Seattle Funding, etc.).

4. Title Company & Escrow - Normally this is something handled by the Real Estate Agent you're working with. Each title and escrow company works a little differently, but the outcomes are the same. I typically use Fidelity or First American. I also have private law firms who I escrow through frequently as well.

5. CPA - I'd be happy to recommend a CPA to you as well.

I hope I was able to answer all of your questions for the time being. I'd be more than happy to chat with you about your goals and answer any followup questions you may have.  Feel free to reach out!